5(1)The provisions of this Part of this Schedule have effect for the purposes of paragraph (b) of subsection (1) of section 748.
(2)In the case of a controlled foreign company—
(a)which is, by virtue of section [F1749(5)], presumed to be resident in a territory in which it is subject to a lower level of taxation, and
(b)the business affairs of which are, throughout the accounting period in question, effectively managed in a territory outside the United Kingdom other than one in which companies are liable to tax by reason of domicile, residence or place of management,
references in the following provisions of this Part of this Schedule to the territory in which that company is resident shall be construed as references to the territory falling within paragraph (b) above, or, if there is more than one, to that one of them which may be notified to the Board by the United Kingdom resident company or companies referred to in paragraph 4(2) of Schedule 24.
Textual Amendments
F1Words in Sch. 25 para. 5(2)(a) substituted (with effect in accordance with Sch. 17 para. 37 of the amending Act) by Finance Act 1998 (c. 36), Sch. 17 para. 29; S.I. 1998/3173, art. 2